Net New ARR Calculator

Net new ARR is the single number that tells you how much annual recurring revenue your subscription business actually added in a period, after every gain and loss is counted. This calculator brings the four key ARR movements together so you can see growth clearly rather than guessing from headline sales figures. You enter new ARR from brand new customers, expansion ARR from existing customers who upgraded or bought more seats, churned ARR from customers who cancelled outright, and contraction ARR from customers who downgraded or trimmed their plan. The tool adds the two positive movements and subtracts the two negative ones to give your net new ARR, which is the real change in your recurring revenue base. Founders, finance teams and revenue leaders use this figure to track momentum, set board targets and compare quarters on a like for like basis, because it strips out one off services revenue and focuses purely on the recurring engine. A few good practice tips help you get the most from it. First, measure each movement over the same period, usually a month or a quarter, so the parts reconcile cleanly. Second, watch the mix, not just the total, because growth driven by expansion is far cheaper and more durable than growth that leans only on new logos. Third, keep an eye on churned and contraction ARR over time, since rising losses can quietly cancel out strong new sales. Used regularly, net new ARR gives you an honest, comparable read on whether your business is building durable recurring revenue or simply running to stand still.

Net new ARR = new + expansion - churned - contraction. Estimate only, not financial or tax advice.